These Are the Best Auto Insurance Companies for Accident Forgiveness

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Jeffrey Johnson graduated summa cum laude from the University of Baltimore School of Law and has worked in legal offices and nonprofits in Maryland, Texas, and North Carolina. He has also earned an MFA in screenwriting from Chapman University and worked in film, education, and publishing. His professional writing has appeared on sites like The Manifest and Vice, and he is the author of a novel ...

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Written by Jeffrey Johnson
Insurance Lawyer Jeffrey Johnson

UPDATED: Dec 22, 2021

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Key Takeaways

  • Allstate, Nationwide, and Progressive are among the best accident forgiveness car insurance companies
  • GEICO and USAA accident forgiveness programs require a five-year wait for the earned benefit
  • If you cannot take advantage of an accident forgiveness program, seek alternative discounts based on good driving habits

Which are the best accident forgiveness auto insurance companies? Of course, you will find that many of the top auto insurance companies offer accident forgiveness; however, seven of them stand out.

So, what is accident forgiveness, and why should you consider it when choosing a car insurance company? If you have an accident on your record, you can expect your car insurance rates to skyrocket, especially if you are at fault.

Also, it might be harder to find affordable car insurance with an accident on your record. However, you can keep your car insurance rates relatively low if your car insurance company offers accident forgiveness, regardless of who was at fault.

Read on to learn about the best accident forgiveness car insurance companies and discover which major companies do not offer accident forgiveness. To see rates from top car insurance companies in your area right now, enter your ZIP code into our free quote tool above.

Which car insurance companies offer the best accident forgiveness insurance overall?

These are the seven car insurance companies that offer the best accident forgiveness packages:

Best Accident Forgiveness Car Insurance Companies

CompanyHow Accident Forgiveness Is AddedEligibilityLimitations
AllstateAdd-onMust have a good driving recordMust purchase a Your Choice Auto plan
American FamilyAdd-on or earned benefitHave no major driving violations on your record, be a loyal American Family customer for five years, no at-fault accidents in the last five yearsMust have no moving violations or at-fault accidents in the past 12 months, only one at-fault accident in the past three years
Amica MutualAdd-onMaintain a clean driving record, earn pointsAvailability varies by state
ChubbAdd-onBe accident-free for five straight yearsNot available in CA, CT, DE, NY, or NC
FarmersAdd-onMust be a Farmers Insurance policyholder and driver for the past three years, or have a parent who qualifies if the driver is under 21One accident per policy, not available in CA, HI, NY, or SC or with branded smart plan policies
NationwideAdd-onAvailable to customers who have been with the company for the past six monthsNot available in CA
ProgressiveEarnedMust maintain a clean driving record for three to five yearsRelated claims must be less than $500 for most newer customers, all customers lose a safe-driving discount after a forgiven accident
TravelersAdd-onBe a safe driver for the past five yearsOne accident and one violation in the past three years
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In terms of accident forgiveness, Progressive provides more to its long-term customers. For example, the company offers forgiveness for large claims relative to customers who have been with the company for a few years.

Read on for more in-depth information about the other top companies in this category.

Allstate

Allstate’s accident forgiveness accompanies the Gold or Platinum Your Choice Auto plan. Under the Gold package, Allstate will forgive your first accident. You can keep your safe driving discount with the Platinum package if you become involved in several accidents.

American Family

You can earn accident forgiveness with American Family by remaining claim-free for five consecutive years. If you purchase accident forgiveness car insurance, American Family will remove the fee from your policy.

American Family will also allow you to purchase accident forgiveness if you switch to their company after having been accident-free for the previous five years and meet the other two criteria.

Amica Mutual

Despite being a relatively small company, Amica Mutual has a surprisingly generous accident forgiveness program.

With Amica Mutual, you must purchase the Accident Forgiveness and Good Driving Rewards coverage to earn points based on good driving. When you have enough points, you can use them to buy accident forgiveness after your first accident.

Chubb

Chubb offers accident forgiveness. It also forgives some comprehensive car insurance and small insurance claims (those less than $500).

Farmers Insurance

Farmers Insurance’s accident forgiveness resets every three years, granted that you endure those three years without an at-fault accident. Even drivers under 21 years of age must have clean driving records for the past few years.

Nationwide

The Nationwide accident forgiveness program might be the best overall. It allows for two violations and two at-fault accidents in two years.

Also, if there are multiple drivers and cars on a policy, two are forgiven per policy. Additionally, customers can keep their safe driving discount after a forgiven accident.

Travelers Insurance

Travelers Insurance offers accident forgiveness and forgiveness for minor traffic violations to drivers with good driving records. You can receive these protections by enrolling in the company’s Responsible Driver Plan.

Upgrade to the Premier Responsible Driver Plan and get a Decreasing Deductible and Total Loss Deductible Waiver as well.

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Are there other major car insurance companies that offer accident forgiveness?

Here are 11 more top car insurance companies with accident forgiveness, but with notable limitations:

Other Car Insurance Companies That Offer Accident Forgiveness

CompanyHow Accident Forgiveness Is AddedEligibilityLimitations
AAAAdd-onMust be listed on the policyCan only apply once per policy
Auto-Owners InsuranceAdd-onMust have a clean recordDoes not apply for catastrophic accidents
ErieEarnedMust be an Erie customer for at least three straight yearsApplies to at-fault accidents in most states where Erie is available, all accidents in New York
GEICOAdd-on and earnedMaintain accident-free driving record for five consecutive years, state-specific requirementsNot available in CA, CT, or MA, might need to be at least 21 years old where available
The HanoverAdd-onMust be accident-free for three yearsOne accident forgiven per policy
The HartfordEarnedAll drivers on the policy must have a clean record for the past five yearsOne at-fault accident per policy, not available in CA
KemperAdd-onNot specifiedNo available in NC
Liberty MutualAdd-on or earnedMaintain accident-free record for five years to earn forgivenessOne accident per policy per five-year period
SafecoEarnedMust be a Safeco customer for a set number of years and maintain a clean record for the past fiveNot available in CA, must not be at fault
State FarmAdd-on or earnedMaintain safe driving record for nine years for earned benefitOne is forgiven accident every nine years, one accident per policy
USAAEarnedMust be USAA policyholder for past five years with no accidentsVaries by location, only available to members of the military and their families
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In terms of accident forgiveness, State Farm might be the most punitive company. Here is some additional information about other companies on this list:

GEICO

Like American Family’s program, the GEICO accident forgiveness program is an add-on and earned benefit. However, it takes longer for GEICO customers to enjoy their free benefit (about five years).

Kemper

Kemper’s accident forgiveness is part of its Kemper Prime Auto Enhanced car insurance package.

Liberty Mutual

For its accident forgiveness, Liberty Mutual considers all accidents, whether or not you were at fault.

The Hanover

The Hanover offers Second Chance Accident forgiveness, even for drivers who recently added it to their policy. Drivers listed on the policy must remain accident-free for three years, even if they recently switched to The Hanover car insurance.

USAA

The USAA accident forgiveness program might be generous, but it has three limitations:

  • It is only available to members of the military.
  • USAA is not available in all states.
  • Only members who have had USAA car insurance for five years can qualify.

As with other companies on this list, the five-or-more year wait is a notable limitation.

Which major car insurance companies do not offer accident forgiveness insurance?

Four major car insurance companies that do not offer accident forgiveness are 21st Century Insurance, Dairyland, Esurance, and Shelter Insurance. All of these companies have relatively small market shares.

Discounts You Can Earn Besides Accident Forgiveness

You may need to consider looking into other discounts based on your driving record if you do the following:

  • Decide to select one of the car insurance companies with limited accident forgiveness.
  • Choose one of the companies that do not offer accident forgiveness.
  • Live in a state like California, where accident forgiveness programs are not allowed.

Accident forgiveness programs are available in California due to Proposition 103 (passed in 1988), which sought to combat excessive car insurance rates. (You can find the literature on the California Legislative Information website.)

That said, there are a few good driving-based car insurance discounts that you can obtain, even in California. Discounts that companies offer besides accident forgiveness include the following:

  • Safe driving discount
  • Good driver discount
  • Diminishing deductible

Companies often tie safe driving discounts with telematics. You can earn a discount for installing a telematics device in your car or downloading a mobile phone app.

Rewards programs can often help you earn a diminishing deductible or good driver discounts. Allstate, Amica Mutual, and Progressive each offer a driver rewards program.

Best Accident Forgiveness Car Insurance Companies: The Bottom Line

Of course, one of the best ways to keep your car insurance rates low is to maintain a clean record.

Still, if you are looking for accident forgiveness, it’s best to select a company that allows you to earn it. That way, you will avoid paying extra money each month, especially if you end up not needing accident forgiveness in five years.

However, if you have a driver on your policy who is more likely to get into an accident, find a policy that includes accident forgiveness. If all drivers maintain an accident-free record over a specified number of years, you might be eligible.

Ultimately, you may want to obtain quotes from the best accident forgiveness car insurance companies, among others.

Now that you know a little more about the best accident forgiveness car insurance companies, are you ready to see car insurance rates from top companies in your area? Enter your ZIP code into our free quote tool below and get started.

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